That Canada is witnessing an increased number of newcomers is no longer news. Students, permanent residence, skilled workers, and refugees are arriving in Canada and straining already strained infrastructures. There is more demand but less supply in many housing markets across Canada driving housing prices up and increasingly out of the reach of the average Canadian. It is worth nothing that several markets have started witnessing a slowdown in the prices due to government demands and reduced purchasing power due to inflation. Will this be sustained remains to be seen.
This articled will be skewed towards Greater Moncton Area (Moncton, Dieppe, Riverview) of New Brunswick in Atlantic Canada. Note that the situation may vary from one city to another in Canada and so if you are heading to another city do contact the local Realtors or Property managers for that city to understand the typical prices.
In Moncton, New Brunswick, the cost of renting a home has become a major topic of discussion, with tenants often questioning why rents seem high. While the situation is multifaceted, here are the top six reasons why landlords in Moncton may charge higher rents.
Increased Demand: Moncton has experienced a surge in population, with a growing number of students, professionals, and families seeking housing. The heightened demand for rental properties allows landlords to set higher rents, capitalizing on the limited availability of suitable accommodations.
Maintenance and Upkeep Costs: Property ownership comes with its fair share of expenses, including maintenance, repairs, and compliance with regulations. Landlords in Moncton may find themselves necessitated to charge higher rents to cover these costs and ensure the longevity and quality of their properties.
Economic Factors: The overall economic conditions in Moncton play a crucial role in determining rental prices. If the cost of living is high or the job market is competitive, landlords may adjust their rental rates to align with the economic landscape of the city.
Amenities and Location: No two properties are alike. Properties located near schools, universities, colleges, or other city attractions will attract a higher price simply because of demand. Some rentals are furnished, and the landlord may pay for snow removal and utilities. These extra amenities add up to the overall cost of the rental.
Property Taxes and Insurance: Landlords bear the burden of property taxes and insurance premiums. Fluctuations in these costs can directly impact the rental prices they set. Adjustments are often made to ensure that landlords can meet these financial obligations without compromising their investment returns.
Investment Returns: Ultimately, landlords are investors seeking returns on their property investments. Higher rents may be a strategic decision to maximize profitability and make property ownership in Moncton a viable and sustainable venture.
While high rents might be a concern for tenants, it’s essential to recognize that landlords are managing their investments within the broader context of economic and market conditions. Understanding these factors provides tenants and landlords alike with valuable insights into the complexities of the rental market in Moncton, fostering a more informed and constructive dialogue around housing affordability.
These are typical Rental Prices as at the time of writing this article in Moncton.
- Typical Room Rentals $500 – $1000
- 1-2 Bedroom Apartment – $1100 – $1900
- 3 Bedroom Apartment – $1600 -$2500
*Note that there are always exceptions to the typical rental prices. So, assume nothing.
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Image Source – Statista
